NSE/BSE Codes: Scrip Code: 502820, Trading Symbol: DCM, ISIN: INE498A01018

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under SEBI Listing Regulation 30 regarding ongoing litigation and court proceedings between DCM Limited and GCD Prime (Developer) concerning termination of Joint Development Agreement (JDA) for real estate project in Hisar, Haryana.

Involved Parties / Authorities:

  • GCD Prime (Developer): Partnership firm engaged in real estate development
  • DCM Limited: Listed company and land owner
  • Hon'ble High Court of Delhi: Single Judge and Division Bench
  • Directorate of Town and Country Planning, Haryana: Licensing authority
  • Haryana Real Estate Regulatory Authority (HRERA), Panchkula: Project registration authority
  • SEBI and Stock Exchanges: Regulatory recipients of disclosures

Date / Timeline of Event:

  • August 11, 2022: Joint Development Agreement executed
  • November 7, 2022: License No. 179 obtained from DTCP Haryana
  • March 15, 2023: HRERA Registration No. HRERA-PKL-HSR-427-2023 obtained
  • April 18, 2023: License suspended by Director General, Town and Country Planning, Haryana
  • November 1, 2025: DCM issues Notice of Forfeiture and Termination to GCD Prime
  • March 18, 2026: GCD Prime serves arbitration notice under Section 21 of Arbitration Act
  • July 28, 2026: Single Judge of Delhi High Court dismisses GCD Prime's Section 9 petition
  • August 7, 2026: GCD Prime files appeal under Section 37(1)(b) of Arbitration Act
  • August 12, 2026: Division Bench stays Single Judge's order and directs status quo on project land
  • August 13, 2026: DCM files latest disclosure to stock exchanges

Brief Description of Outcome / Dispute:

The dispute arises from DCM Limited's termination of Joint Development Agreement with GCD Prime for development of 68.35 acres of land in Hisar, Haryana under Deen Dayal Jan Awas Yojana (DDJAY) policy. The termination was triggered by GCD Prime's failure to get revocation of license suspension imposed by Haryana authorities in April 2023. GCD Prime challenged the termination through Section 9 petition before Delhi High Court, which was dismissed on July 28, 2026. The developer then filed an appeal, and the Division Bench has now stayed the Single Judge's order and maintained status quo on the project land pending final adjudication.

Impact of Outcome:

Financial Impact:
  • DCM Limited has forfeited ₹50 crore paid by GCD Prime under the JDA (₹30 crore at term sheet execution, ₹6 crore at JDA execution, ₹4 crore adjustable deposit, ₹10 crore post 60 days of JDA)
  • GCD Prime claims to have incurred approximately ₹72 crore in total expenses including external development charges (₹5.88 crore), bank guarantees (₹7.97 crore), stamp duty (₹1.50 crore), and on-site development work (₹5 crore)
  • No determinable financial implication disclosed for DCM Limited's financial statements at this stage
  • The matter remains sub judice with potential financial implications dependent on final court outcome
Operational / Business / Strategic Impact:
  • Project development completely stalled since April 2023 license suspension
  • HRERA has kept project registration in abeyance and frozen escrow account (HDFC Bank Account No. 00030350008901)
  • DCM Limited cannot develop or create third-party rights on the land due to status quo order
  • Strategic delay in real estate development plans for Hisar land parcel
  • Reputational impact from ongoing litigation and project delays
Other Implications:
  • Regulatory compliance requirements for continuous disclosures under SEBI LODR
  • Potential arbitration proceedings before sole arbitrator Justice (Retd.) Badar Durrez Ahmed
  • Legal costs associated with prolonged litigation

Next Steps / Required Actions:

  • Await copy of Division Bench's interim order dated August 12, 2026
  • Final adjudication of GCD Prime's appeal before Delhi High Court Division Bench
  • Possible commencement of arbitration proceedings before sole arbitrator
  • Continued compliance with SEBI disclosure requirements as developments occur
  • Maintenance of status quo on project land as directed by Division Bench